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6. Net cash flow Clancy is a financial analyst who works for an investment bank in downtown Denver, Colorado, and is analyzing the current cash

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6. Net cash flow Clancy is a financial analyst who works for an investment bank in downtown Denver, Colorado, and is analyzing the current cash condition of ABC Corp. The following Information has been obtained from ABC Corp's financial reports, The company just reported net sales of $6,250,000. Assume that there are no noncash sales. The operating costs (excluding depreciation and amortization) are 65% of the company's total revenues. Its depreciation and amortization charges are 5% of total sales. . The interest charges are 15% of EBIT, and it pays a 40% tax rate Net cash flow reflects the true cash position of the company, and can differ from the balance that reflects the money that the business is tert with after paying its operating expenses, interest expense, and taxes. ABC Corp's current net cash flow is $1,268,750 O $632,000 $956,250 @ $1,593,750

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